Standard Life likely to keep quiet over Ignis deal

Standard Life is expected to keep quiet over its acquisition of Ignis Asset Management. Picture: Neil Hanna]

TERRY MURDEN

STANDARD Life is unlikely to shed more light on the impact of its acquisition of Ignis Asset Management when it unveils half-year figures this week.

Analysts expect a solid set of figures from the company but will be disappointed at a lack of detail on how it will integrate Ignis, which it bought from Phoenix for £390 million in March.

The company has so far not disclosed how the deal will affect 230 Ignis staff in Glasgow. Standard Life Investments chief executive Keith Skeoch said at the time of the deal that there will be job losses as it seeks to take £50m in costs out of the business. Some staff are expected to transfer to SLI, which will need to fill 200 vacancies over the next year.

The acquisition of Ignis was seen as a key move in Standard Life shifting from life and pensions into a broader money manager and the deal will add £68bn to funds under management.

Nor is there likely to be any further comment on the independence issue, having said in February that the company would consider relocating in the event of a Yes vote. Last week it was forced to deny a report that it was in the process of buying a London headquarters.

Analysts at JP Morgan Cazenove are predicting a 6 per cent lift in the interim dividend to 5.6p per share to be paid out of £800m of excess capital.

The company is said to be well-placed to benefit from increased sales of group and individual pensions.

It has only a small proportion of its business in the annuities market so will suffer less than some rivals by new rules introduced by the Chancellor in the Budget.